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Author Question: The Bond MarketYou received a $100 savings bond for your birthday. The bond pays $100 at maturity, ... (Read 97 times)

Facerro

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Question 1

The Bond Market

If you own a $100 face value bond with one year remaining to maturity and a coupon rate of 10% and new bonds are paying 4%, what is the value of your old bond today? (Round to the nearest hundredth.)
◦ $9.45
◦ $22.00
◦ $96.00
◦ $20.80

Question 2

The Bond Market

You received a $100 savings bond for your birthday. The bond pays $100 at maturity, which is in 6 years. If the interest rate is 3.5%, what is the present value of the bond? (Round to the nearest hundredth when appropriate.)
◦ $100
◦ $81.35
◦ $3.70
◦ $22.22


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Marked as best answer by Facerro on Nov 23, 2022

char00char

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Facerro

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Reply 2 on: Nov 23, 2022
Great answer, keep it coming :)


amit

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Reply 3 on: Yesterday
:D TYSM

 

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